Industry Largely Welcomes, Experts Cautious On Hiked FDI In Defence

"This will facilitate higher commitment by current and potential foreign investors in their joint venture projects, both through increased investments and technology transfers.

" We at Mahindra Defence, with our technology portfolio encompassing all three wings - army , air force and navy - are committed to develop and absorb the latest technology to build a wide range of sophisticated defence equipment to serve the nation," Shukla added.

Foreign vendors were, expectedly, pleased.

"FDI has immense potential to enable India's desire to be self-sufficient in defence production, by producing high tech systems in collaboration with foreign firms in India," Air Vice Marshal (Retd.) Arvind Walia, Regional Executive, India & South Asia, Sikorsky Aircraft Corp, who is currently travelling in the US, told IANS in an e-mail interaction.

"With the liberalisation of the existing FDI regime, we are hopeful to reach a stage in which the Indian private industry could channelize its energies to indigenise defence production. India should aspire to be seen as a regional hub for global outsourcing of defence equipment owing to its geo-political location. This will not only enable economies of scale but also considerably decrease India's procurement rates.

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